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IMPACT OF I-GAMING: Provincial Governments offerings

IMPACT OF I-GAMING: Provincial Governments offerings. Presented By: Morden C. Lazarus. I-Gaming Landscape:. Global market for I-Gaming alone is between $16-$20 billion Estimated size of Canadian I gaming market is about $1 Billion

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IMPACT OF I-GAMING: Provincial Governments offerings

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  1. IMPACT OF I-GAMING: Provincial Governments offerings Presented By: Morden C. Lazarus

  2. I-Gaming Landscape: • Global market for I-Gaming alone is between $16-$20 billion • Estimated size of Canadian I gaming market is about $1 Billion • Is it time to review the underlining principles of the laws applicable to online gaming in Canada, as set out in the relevant provisions of the Criminal Code of Canada. • Could Foreign competition in the I-Gaming field lead to legislative changes in how the laws of Canada treats the I-gaming industry?

  3. Competition and Liquidity: • Each provincial government presently takes the position that it can only accept as customers persons physically present within its own borders • How can provincial corporations compete with “Foreign I-gaming Operators” that offer casino games and poker markets to customers worldwide? • Because BCLC, ALC and LOTO QUE have announced that they are joining together & combining their markets – will that provide liquidity sufficient to compete in the I-Gaming casino and poker market on a global basis.

  4. Competition and Liquidity • Should the provincial lottery corporations take bets or allow players from foreign jurisdictions to provide liquidity? • Provincial governments say no as a consequence of the Supreme Court of Canada’s decision in the Earth Future Lottery matter. PEI CA held a proposed I-Gaming operation conducted & managed by a charity could not seek customers from outside PEI and in the world at large –as appears from ss. 207(1)(b).

  5. Competition and Liquidity: • In the provincial gaming (ss. 207(1)(a)) context, in Canada, rationale for geographic restrictions in the Criminal Code of Canada was to prevent inter-provincial competition, not international competition. Case law already treats provincial government gaming differently than charitable gaming – the public is already presumed to be protected wherever governments are involved. Do these factors merit consideration to permit on a legal basis the international reach of Canadian I-Gaming Provincial Operations?

  6. Restrictions Re: SportsBetting: • What is the Rational for prohibition and single game sports bets for fights / races/ match-fixing? • Is this rationale still valid today? Does a ban on single-sport betting accomplish these policy goals? • Could working cooperatively with international sports books better guard against match-fixing than this prohibition?

  7. Restrictions Re: Sports Betting • What would it take to change the Criminal Code of Canada to permit single game sports betting? • Last amendment to the Criminal Code of Canada with respect to gaming – was to permit the game of craps to be played in land based casinos and to allow lottery schemes to be conducted on international cruise ships in Canadian territorial waters, both of which occurred in 1999: • What were the forces behind such a change? (Loto-Quebec) How can such amendments receive the support of policy makers? To the public? In answering, consider the following four (4) principles:

  8. Restrictions Re: Sports Betting: • (1) Ineffectiveness of the Current Law: • Rationale of the restriction dates from 1985, when integrity of sport and prevention of "match-fixing" could be achieved by land-based restrictions. In 2010, the reality of offshore online sports betting provides ample opportunity to bet on single sporting events. If the aim of the policy is to be achieved by these means, what other measures can be taken?

  9. Benefits of Regulating: • (2) Benefits of Regulation: • Policy makers and public must believe that regulation alone can maintain the integrity of the sports betting I-gaming industry and can address and alleviate the negative social consequences of betting (e.g. loss of integrity of sport). • (3) Revenue: • If we are to legislate, change cannot detract from the revenues earned by the provincial governments from their monopoly position. • (4) International Competitiveness: • Allow greater degree of competition from outside the JV involving the provinces, which would enhance products, gaming services & the overall entertainment experience, available to Canadians online.

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